Real Estate Escrow Unit 6

The lender must retain each completed HUD-1 or HUD-1A Settlement Statement and related documents

The lender must retain each completed HUD-1 or HUD-1A Settlement Statement and related documents for five years after settlement, unless the institution disposes of its interest in the mortgage and does not service the mortgage.

Hazard insurance for a home located in a Wildland Forest Fire Risk Area may be available through FAIR, which stands for

A property located within an area identified to be at considerable risk of forest fires must be disclosed to the buyer. Hazard insurance for a home located in a Wildland Forest Fire Risk Area may be difficult for a buyer to obtain. However, insurance may be available to such a homeowner through the Fair Access to Insurance Requirements (FAIR) program, established by the federal government in the 1960s and regulated and operated by each state.

California Civil Code Section 1103 which may require the completion and delivery to a buyer of the Natural Hazard Disclosure Statement (NHD) revealing the existence of any natural hazard is required for

California Civil Code Section 1103 may require the completion and delivery to a buyer of the Natural Hazard Disclosure Statement (NHD) revealing the existence of any natural hazard. The requirement applies to any sale, exchange, land contract, or lease with an option to buy any one-to-four-unit residential property (including manufactured homes), whether the transaction requires the completion and delivery to the buyer of the Natural Hazard Transfer Disclosure Statement (Cal. Civ. Code § 1102) and whether the property is located in one of six designated hazard zones.

Common interest developments (CID)

Common interest developments (CID), which include property types such as condominiums, in California require a homeowners association. In California, the Davis-Stirling Act is the law that governs common-interest developments. A CID may take form as condominium, planned development, community apartment, or stock cooperative.

The federal Truth in Lending Act (TILA), is covered under

Escrow, title insurance, and real estate professionals find themselves frequently in transactions subject to the Truth in Lending Act (TILA), or Regulation Z. Frequently referred to as "Reg Z," it requires real estate licensees acting as creditors to furnish truth-in-lending disclosures to consumers.

The Department of Housing and Urban Development (HUD)

HUD traces its roots to the National Housing Act of 1934 and the U.S. Housing Act of 1937. HUD was established in 1965 as a cabinet-level department of the U.S. government. The secretary of HUD is appointed by the president with the approval of the Senate and administers the department.HUD replaced the Federal Housing Administration (FHA) as the primary government housing agency and administers the FHA loan program.Making direct loans to construct or rehabilitate housing projects for the elderly and the disabled.

Interest rates on non-personal real estate loans made by nonexempt lenders

Interest rates on nonpersonal loans made by nonexempt lenders may not exceed the Federal Reserve discount rate plus 5%. If today's Federal Reserve Board discount rate is 0.25%, the ceiling for nonexempt lenders would be 5.25%.

Most insurance policies will include exclusions to coverage, such as

Most insurance policies will include exclusions to coverage, such as earthquakes, flood, and mudslide. Separate policies must be obtained to include protection for these perils. Lenders almost never require earthquake insurance protection as part of the loan conditions.

The Home Owners' Association (HOA) documents requested by the escrow holder

Obtaining and delivering a copy of the homeowners association (HOA) bylaws and restrictions along with a copy of the current financial statement and annual budget to the buyers may be services requested of the escrow holder, though the actual duty and responsibility rests with the seller. The escrow holder will also request an HOA certification to be completed and delivered. Under the Davis-Stirling Act, the HOA must comply within 10 business days of the date of the request.

The Real Estate Settlement Procedures Act (RESPA) is applicable to

RESPA is applicable to all federally related mortgage loans (loans, including refinances, secured by a first or subordinate lien on residential real property) including one-to four-family properties, either existing or to be constructed using proceeds of the loan (including individual units of condominiums and cooperatives), and manufactured homes, either existing or to be constructed using proceeds of the loan.

Truth in Lending rules were amended under The Dodd-Frank

The Dodd-Frank Wall Street Reform and Consumer Protection Act implemented new truth-in-lending rules, effective April 1, 2011. These changes influence the procedures the escrow officer must follow in preparing the Settlement Statement (HUD-1).

The law defines broker-controlled funds as those monies owned by any of the following except

The law defines broker-controlled funds as those monies owned by the broker; a spouse, child, parent, grandparent, brother, sister, father-in-law, mother-in-law, brother-in-law, or sister-in-law of the broker; or by any entity in which the broker alone or together with any of the above relatives of the broker has an ownership interest of greater than 25%. You

Nonconforming properties may include all the following except

The primary purpose is to protect the consumer from acquiring a "nonconforming" structure, such as improvements performed without appropriate permits or illegal conversions, including patios, garages, or unpermitted apartment conversions (e.g., converting a four-unit apartment building into five units).